JOINT VIRGIN AND DELTA SERVICE CLEARED FOR TAKEOFF

JOINT VIRGIN AND DELTA SERVICE CLEARED FOR TAKEOFF

VIRGIN Australia (ASX: VAH) and Delta Airlines have been given the green light by the Australian Competition and Consumer Commission (ACCC) to run their popular trans-Pacific services for a further five years.

The alliance between the airlines allows for streamlined travel between Australia and the United States, in addition to smoother transitions within respective domestic networks, according to ACCC chairman Rod Simms.

Virgin and Delta operate return services between Sydney and Los Angeles, and Brisbane and Los Angeles.

"Travellers use these key gateway points to then connect with other destinations," says Simms. "This is reflected in the growing number of passengers using such connecting services."

While the service offered by Virgin and Delta accounts for a 37 per cent combined market share on the key overlap route of Sydney to Los Angeles, the ACCC is satisfied that the public benefit in this instance outweighs the negative repercussions on fair competition.

"The alliance has also resulted in enhanced products and services including increased and better connections, access to each other's flights and better schedule spread, loyalty program benefits and improved lounge access," says Simms.

However, while the ACCC renewed the term of the agreement for a further five years, it rejected Virgin and Delta's initial application for a 10-year arrangement.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Twiggy takes hands-on role at Fortescue as new leaders appointed to green hydrogen business

Twiggy takes hands-on role at Fortescue as new leaders appointed to green hydrogen business

Fortescue Metals Group (ASX: FMG) has announced a major restructure...

Without foreign students and workers, retail sector calls for pensioners to fill staffing gaps

Without foreign students and workers, retail sector calls for pensioners to fill staffing gaps

The Australian Retailers Association (ARA) has called on new g...

Cannon-Brookes launches shareholder campaign against AGL demerger

Cannon-Brookes launches shareholder campaign against AGL demerger

Australian billionaire and Atlassian co-founder Mike Cannon-Brookes...

Action film The Fall Guy starring Ryan Gosling to inject $244m into the Australian economy

Action film The Fall Guy starring Ryan Gosling to inject $244m into the Australian economy

The Australian economy is expected to receive a $244 million inject...